Metals News - Weekly Review

Metals News - Weekly Review

Postby Johnkitty » Tue Aug 10, 2010 11:09 pm

Precious metals gaining some recognition after rallying, albeit in very minimal increments for the past two weeks now after getting liquidated to $1,157 in gold. Gold has traded up to $1,208 and looks to be testing the resistance of the $1,215-$1,2020 area. What’s helping the precious metals right now is the weaker USD. The dollar traded near the weakest level in three months against the euro after a U.S. report showed companies hired fewer workers than forecast, signaling the labor-market recovery will be slow to take hold. The dollar traded at $1.3284 per euro from $1.3280, after touching $1.3334 on Aug. 6, the weakest level since May 3. I think this looks like it will continue the trend and all of the shorts who were short the USD are now getting out and squeezing this market a bit. I like the silver play and I am looking for this market to go to $19. I think gold will have a tough time breaking through the $1,215 level. I am looking for sellers to hold this market below here.

Copper still going strong even after a bit of a speed bump Friday with the non farm payrolls. The market looked like it would be headed to $3.30, liquidating a bit as the S&P was down more than 15 points but suddenly had a nice comeback in the afternoon to keep the base metal afloat. $3.40 is a very big number but right now the market trades only a few pennies shy of that at $3.38. Stockpiles however are shrinking on the LME and this is what’s causing a lot of the buying recently other than just the rallying equities. I am looking for copper to test the $3.40 mark early in the week.

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